(5) Share-based Compensation

The Company accounts for its share-based compensation by recognizing the grant date fair value of share-based awards, net of estimated forfeitures, as share-based compensation expense over the underlying requisite service periods of the related awards.

The following table reflects the total share-based compensation expense amounts reported in the accompanying Consolidated Statements of Operations:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
	(In thousands)				(In thousands)
Cost of ATM operating revenues	$	229	$	196	$	404	$	336
Selling, general, and administrative expenses		4,440		3,955		10,223		9,635
Total share-based compensation expense	$	4,669	$	4,151	$	10,627	$	9,971

The change in total share-based compensation expense for the three and nine months ended September 30, 2018, compared to the same periods of 2017 are attributable to the amount and timing of share-based payment awards, net of forfeitures.

Restricted Stock Units. The Company grants restricted stock units (“RSUs”) under its Long-Term Incentive Plan (“LTIP”), which is an annual equity award program under the Third Amended and Restated 2007 Stock Incentive Plan. The ultimate number of RSUs that are determined to be earned under the LTIP are approved by the Compensation Committee of the Company’s Board of Directors on an annual basis, based on the Company’s achievement of certain performance levels during the calendar year of its grant or the associated performance period, if longer than one year. The majority of these grants have both a service-based (“Time-RSUs”) and a performance-based vesting schedule (“Performance-RSUs”), and for these the Company recognizes the related compensation expense based on the estimated performance levels that management believes will ultimately be met. In addition, a portion of the awards are Time-RSUs and the associated expense is recognized ratably over four years. Finally, a limited number of RSUs have a market-based and service based vesting schedule (“Market-Based-RSUs”). For these grants, the Company recognizes the estimated grant date fair value over a 24 month period. Performance-RSUs and Time-RSUs are convertible into the Company’s common shares after the passage of the vesting periods, which are generally 24, 36, and 48 months from January 31 of the grant year, at the rate of 50%, 25%, and 25%, respectively. Performance-RSUs and Market-Based RSUs will be earned to the extent the Company achieves the associated performance-based or market-based vesting conditions. Although these RSUs are not considered to be earned and outstanding until the vesting conditions are met, the Company recognizes the related compensation expense over the requisite service period (or to an employee’s qualified retirement date, if earlier) using a graded vesting methodology. RSUs are also granted outside of LTIPs, with or without performance-based vesting requirements.

The number of the Company’s earned non-vested RSUs as of September 30, 2018, and changes during the nine months ended September 30, 2018, are presented below:


	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested RSUs as of December 31, 2017	1,006,009	$	37.88
Granted	722,937	$	26.96
Vested	(616,826)	$	39.19
Forfeited	(147,000)	$	37.82
Non-vested RSUs as of September 30, 2018	965,120	$	28.87

The above table only includes earned RSUs; therefore, the Performance-RSUs and Market-Based RSUs granted in 2018 but not yet earned are not included. The number of Performance-RSUs granted at target in 2018, net of estimated forfeitures, was 291,821 units with a grant date fair value of $23.14 per unit. The number of Market-Based RSUs granted in 2018, net of estimated forfeitures, was 134,989 units with a grant date fair value of $24.13 per unit. Time-RSUs are included as granted.

As of September 30, 2018, the unrecognized compensation expense associated with earned RSUs was $16.9 million, which will be recognized using a graded vesting schedule for Performance-RSUs and a straight-line vesting schedule for Time-RSUs, over a remaining weighted average vesting period of approximately 1.91 weighted average remaining life years.

Options. The number of the Company’s outstanding stock options as of September 30, 2018, and changes during the nine months ended September 30, 2018, are presented below:


	Number of Shares	Weighted Average Exercise Price
Options outstanding as of December 31, 2017	1,250	$	9.69
Granted	234,959		22.31
Exercised	(1,250)		9.69
Options outstanding as of September 30, 2018	234,959	$	22.31

Options vested and exercisable as of September 30, 2018	—	$	—

As of September 30, 2018, the unrecognized compensation expense associated with outstanding options was approximately $1.5 million.

Restricted Stock Awards. As of September 30, 2018, all Restricted Stock Awards (“RSAs”) have fully vested and the Company has no unrecognized compensation expense. The Company ceased granting RSAs in 2013.